JCHS: Residential remodeling will slow in 2020
LIRA projects just a slight rise for remodeling sales this year.
Remodeling is expected to grow in 2020, but not at the same level the industry has witnessed in recent years.
National spending for improvements and repairs on owner-occupied homes is expected to rise “only modestly” this year, according to the Leading Indicator of Remodeling Activity (LIRA), released this morning by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University (JCHS).
The LIRA projects that home remodeling expenditures will increase by just 1.5% in 2020 compared with annual gains of 5% to 7% in recent years.
“While homebuilding and sales activity are now firming, softness from earlier last year will continue to pull on remodeling spending growth in 2020,” said Chris Herbert, managing director of the Joint Center for Housing Studies. “However, the slowdown should begin to moderate by year-end as today’s healthier housing market indicators will ultimately lead to more home renovation and repair.”
Despite a slowdown, the JCHS still expects remodeling activity to produce big sales in 2020.
“A 2020 growth projection of less than 2 percent is certainly lackluster for the remodeling market, especially given historical average annual growth of about 5 percent,” said Abbe Will, associate project director in the Remodeling Futures Program at the Center. “Even so, homeowner improvement and repair expenditures are still set to expand this year to over $330 billion.”
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